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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We operate in one reportable business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refer to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments: (i) offer similar products and services to their customers in the form of hotel rooms, food and beverage, and ancillary services; (ii) utilize third-party hotel management companies to deliver its products and services to its customers; (iii) are designed and operated to appeal to similar individuals, groups, leisure and business customers; and (iv) have third-party hotel managers that utilize the same methods (direct hotel sales and various online booking portals) to distribute the Company’s products and services. As of June 30, 2025 and 2024, all of our hotel properties were in the U.S. and its territories. The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer.
Each hotel property derives revenue primarily from guestroom sales, food and beverage sales and revenues from other lodging services and amenities. The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies in note 2.
The CODM reviews and makes decisions on all aspects of the Company’s business using all available financial and non-financial data for each hotel individually. Capital allocation decisions to acquire, sell, enhance, redevelop or perform renewal and replacement expenditures are determined on a hotel-by-hotel basis. Specifically, the CODM reviews the results of each hotel to assess the hotel’s profitability. The key measure the CODM uses to allocate resources and assess performance is individual hotel net income (loss) before interest expense, income taxes, depreciation and amortization, adjusted to exclude certain items determined by management to not be reflective of its ongoing operating performance or incurred in the normal course of business (“Hotel Adjusted EBITDA”). The CODM does not regularly review the results of Stirling OP. The adjustments include gains and losses on hotel dispositions, impairment charges, pre-opening costs associated with extensive renovation projects, property-level legal settlements, restructuring, severance, management transition costs and other expenses identified by management as non-recurring. The CODM does not regularly review asset information by segment.
The following tables include revenues, significant hotel operating expenses, and Hotel Adjusted EBITDA for the Company’s hotels, reconciled to the consolidated amounts included in the Company’s consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
REVENUE
Rooms$222,901 $239,493 $425,152 $465,143 
Food and beverage55,336 55,260 109,865 112,618 
Other hotel revenue18,905 16,875 35,058 33,502 
Total hotel revenue297,142 311,628 570,075 611,263 
EXPENSES
Rooms50,664 53,099 97,522 106,839 
Food and beverage35,455 37,508 71,181 75,339 
Direct expenses2,410 2,502 4,585 4,811 
Indirect expenses:
Property, general and administration
27,054 30,492 51,452 62,953 
Sales and marketing31,026 31,958 59,436 63,463 
Information and telecommunications systems3,421 5,388 8,004 9,708 
Repairs and maintenance13,289 13,581 26,464 27,961 
Energy10,381 9,819 20,320 21,102 
Lease expense1,133 1,063 2,397 2,165 
Ownership expenses487 630 1,042 1,220 
Incentive management fee5,219 5,467 8,879 10,224 
Management fees10,078 10,913 19,468 21,821 
Property taxes9,823 10,596 19,750 20,893 
Other taxes (refunds)
204 (1,107)320 (883)
Insurance5,446 5,828 10,868 12,272 
Total expenses
206,090 217,737 401,688 439,888 
Hotel adjusted EBITDA$91,052 $93,891 $168,387 $171,375 
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Reconciliation of hotel operating income (loss) to net income (loss)
Hotel adjusted EBITDA$91,052 $93,891 $168,387 $171,375 
Other revenue456 683 765 1,322 
Stirling OP hotel profit (loss)
1,173 1,230 2,302 2,030 
Ownership expenses included in other hotel expenses (5,152)(2,793)(10,499)(5,444)
Ownership expenses included in property taxes, insurance and other(520)(742)(840)(970)
Management fees (72)(78)(342)(540)
Depreciation and amortization(35,276)(37,187)(72,615)(77,731)
Impairment charges
(1,447)— (1,447)— 
Advisory services fee
(12,017)(11,474)(23,562)(26,675)
Corporate, general, and administrative
(5,485)(7,194)(9,817)(15,403)
Gain (loss) on disposition of assets and hotel properties
6,684 87,441 38,552 94,397 
Gain (loss) on derecognition of assets
9,900 11,725 19,946 145,634 
Equity in earnings (loss) of unconsolidated entities
44 (162)(387)(695)
Interest income1,253 1,688 2,467 3,672 
Other income (expense), net— 37 — 72 
Interest expense and amortization of discounts and loan costs
(70,687)(68,416)(137,489)(142,377)
Interest expense associated with hotels in receivership(9,902)(11,944)(19,948)(24,042)
Write-off of premiums, loan costs and exit fees(1,486)(3,796)(6,083)(3,814)
Gain (loss) on extinguishment of debt(2)— (15)45 
Realized and unrealized gain (loss) on derivatives(836)1,357 (3,576)6,118 
Income tax (expense) benefit(119)(3,455)(436)(3,758)
Net income (loss)$(32,439)$50,811 $(54,637)$123,216 
The following table reconciles segment total revenue to total consolidated revenue:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Segment total hotel revenue
$297,142 $311,628 $570,075 $611,263 
Stirling OP total hotel revenue
4,403 4,171 8,520 7,793 
Consolidated total hotel revenue
301,545 315,799 578,595 619,056 
Other revenue
456 683 765 1,322 
Total consolidated revenue
$302,001 $316,482 $579,360 $620,378